The Oncology Institute, Inc.

Good afternoon, and welcome to the Oncology Institute's second quarter 2022 earnings conference call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I'd like to turn the conference over to Mark Heppelheiser, General Counsel at TOI. Thank you. You may begin.

Before we get started, I would like to remind you of the company's safe harbor language. Management may make forward-looking statements, including guidance and underlying assumptions. Forward-looking statements are based on expectations that involve risks and uncertainties that could cause actual results to differ materially. For a further discussion of risks related to our business, see our filings with the SEC. This call will also discuss non-GAAP financial measures, such as adjusted EBITDA. Reconciliation of these non-GAAP measures to the most comparable GAAP measures are included in the earnings release furnished to the SEC and available on our website. Joining me on the call today is our CEO, Brad Hively, and our CFO, Mihir Shah. Following our prepared remarks, we'll open the call for your questions. With that, I'll turn the call over to Brad.

Thanks, Mark, and thank you to everyone joining the call today. Before we get into the quarterly details, I'd like to bring your attention to an important development that we expect to give us the financial runway we need to achieve our growth plans. We completed a $110 million strategic investment from Deerfield Management through senior secured convertible notes. The convertible notes bear interest at 4% per annum and mature on August 8, 2027, and are convertible into shares of the company's common stock. The notes have an initial conversion price of approximately $8.57, representing an approximate premium of 30% over the closing price of TOI's common stock. on August 8, 2022. This investment will provide TOI with important growth capital to continue our expansion into new markets with our differentiated value-based approach to oncology. This represents a significant milestone in our journey to disrupt the $200 billion-plus U.S. oncology market. We remain highly optimistic about our future, and we are excited about this new investment from Deerfield, one of the most active and experienced healthcare investors in the country. TOI is on an aggressive growth trajectory, and I'm excited to share some of the highlights from the last quarter with you. As we've discussed before, practice acquisitions and ACWA hires continue to be an important component of our growth strategy. We've had good success with this strategy recently, completing three highly strategic transactions. We completed the acquisition of Women's Cancer Care, the Fresno, California practice of Dr. Perkins and Dr. Gee this May. We completed the acquisition of the Las Vegas practice of Dr. Parikh in July, and we completed the acquisition of the Orange County, California practice of Dr. Safra, also in July. These acquisitions expand TLI's network of 93 specially trained physicians and advanced practice providers across 57 clinics in five states. The addition of women's cancer care opened a new market for TLI, Fresno County, and we are optimistic about the growth opportunities for TLI in that market. Our unique model for oncology care is gaining traction in our expansion market, signaling increased need and desire for a more cost-effective solution like ours. We continue to experience a steady increase in referral volume from our gainshare contracts in Florida, and we added a new value-based agreement in California. We recently opened our 13th market with our expansion into Austin, Texas, where we opened two new specialty cancer clinics, one of which went live in June, and one in August. The clinics offer comprehensive medical oncology services designed to expand access to state-of-the-art oncology care for area patients and will increase access to leading clinical trials, cutting-edge programs, and exceptional oncologists. Our participation in CMS's Oncology Care Management Program, or OCM, continues to generate meaningful savings. Since the start of the program in 2016, TOI has delivered Medicare savings approximately 9.5 million, exceeding target savings by 5.3 million. In the most recent OCM performance period, TOI saw savings of close to 4,000 per patient episode. In addition to these meaningful cost savings, TOI demonstrated above average quality performance based on its aggregate score. I'm very proud of our results in this program as it speaks directly to TOI's track record of achieving better outcomes for patients at a lower cost, an important validation of our differentiated value proposition. While the OCM model ended on June 30, 2022, CMS has announced a new model that replaces OCM. This new model is called the Enhancing Oncology Model, or EOM, and it will start July 2023. TOI continues to support the advancement of oncology payment design and care delivery, and we believe we're leading the way for the adoption of more value-based models of oncology care nationally. We are evaluating the new EOM model and our participation in it. I'll now provide some additional highlights on our progress this past quarter. First, TOI joined the Russell 2000 and Russell 3000 indexes on June 27th, an important milestone for us as a public company. Second, we expanded our partnership agreement with McKesson Corporation. This multi-year agreement is intended to streamline TOI's pharmaceutical distribution logistics and provide operational and financial alignment to continue and execute upon the company's expansion strategy. Third, we are making good progress working through remediation of issues related to SOX compliance. And finally, we welcome several new leaders to TLI, including Melissa Campeni, VP Strategic Partnerships, and Dave Goodman, VP Talent Acquisition. Both will play critical roles in our growth strategy as they lead our contracting partnerships and teammate growth strategy, respectively. Overall, we are pleased with the progress we've made over this past quarter, and we continue to be optimistic about the expansion of our unique model of oncology care. Now, I'll turn the call over to Mihir to provide additional detail on our first quarter financial results.